If my business has multiple owners, can I see how profits are split?

Asked 2 years ago

I am in the process of deciding how I am going to register my small business. I am leaning more towards the LLC structure for its flexibility, but I still need to clarify a few things before making a final decision. In the case of an LLC, since it does not have a limit on how many members the company may have, will I be able to see how the profits will be divided amongst all owners?

Multi-member Profits Small business Llc structure

Cohen Kirk

Thursday, September 08, 2022

LLC profits are distributed proportionately to the members' investments in the company unless you have elected for a different allocation in your operating agreement. For example, if four members invested 25%, each of the four members would be responsible for taxes on 25% of the profits. 